 |
'Big data deluge' leaving HR unclear on how talent data can enhance business results
HONG KONG, March 25, 2013 /PRNewswire/ -- SHL, the global leader in talent measurement, has found that 77% of HR professionals worldwide do not know how its workforce potential is affecting the company's bottom line (Note 1) and less than half of organisations surveyed use objective talent data to drive business decisions. The study of nearly 600 HR professionals worldwide, suggests that HR is overwhelmed by the volume of employee data and struggle to elicit meaningful insight that will help drive businesses forward and deliver results. These findings are revealed in SHL's annual Global Assessment Trends Report 2013.
With organisations focused on restructuring, cost-cutting and growing the top line in tough markets, HR's 2013 priorities reflect the organisation's need to engage their talent (55% of those surveyed) and cultivate strong leaders (52%) to drive change. The report reveals the other priorities of HR professionals are performance management (49%), workforce planning/talent analytics (43%) and training (42%). HR priorities reflect the contention between balancing short-term employee productivity and performance with longer-term strategy of aligning talent to the needs and vision of the business.
"Our research shows that even though organisations measure employee performance, they have historically focused on efficiency data, like how well an employee is performing versus data that allows them to make a strategic talent decision," said Stuart Hedley, Field Enablement Director, Asia Pacific, SHL. "This means key information on talent potential and future capability is overlooked, effectively making targeted programmes that identify the next generation of leaders and nurture talent for critical roles ineffective. This increases succession risk for organisations, putting business performance and continuity in jeopardy.
The challenge of big data
The report also revealed that HR professionals are facing a "big data deluge" with confusion over how to manage talent data to impact company performance. As of 2012, around 2.5 exabytes of data are created each day, which is set to double every 40 months (Note 2). Two major challenges for HR to overcome are data quality and accessibility, and respondents indicated that there is room for improvement in these areas.
Despite workforce planning and talent analytics being referenced among the top five priorities, less than half of respondents (44%) said their organisations use objective data on employees' competencies and skills to make workforce decisions and only 18% of HR professionals are currently satisfied with the way their organisation manages talent data. However, according to the upcoming report from CEB, SHL's parent company, organisations that are effective at using talent analytics can boost employee bench strength, performance and retention by up to 19%.
Social media is one source of data which is adding to the deluge and distracting HR from the metrics that matter; despite 88% of employers claiming a lack of confidence in the quality of candidate data from social media sites, 20% use that information to make hiring decisions and 30% believe the data is useful in determining candidate fit.
"HR is still grappling with its ability to provide strategic data to the business on its workforce and is ill-equipped right now to take advantage of big data. They do not yet have the systems and tools required to identify people intelligence, create metrics, and link HR data sources together," said Stuart. "The ability to analyse greater volumes of complex workforce data and translate in to meaningful talent metrics offers HR the opportunity to identify skill shortages, development opportunities and answer the most pressing talent questions, such as whether the company has the talent to execute on its business plan and grow at the expected rate."
The survey was completed by 592 HR professionals from companies headquartered throughout the world including the UK, US, China, Australia, and South Africa in over ten sectors across small, medium and large enterprises. The report focuses on key trends within the HR landscape in 2013 as well as insights into talent assessment practices.
Notes:
1. 41% of respondents were unsure and 36% did not have a clear understanding of their workforce’s potential and how it impacts the bottom line
2. Harvard Business Review http://hbr.org/2012/10/big-data-the-management-revolution/ar/1
Notes to editors
About the report: Methodology and participating companies
The 2013 report is based on data from an online survey of 592 HR professionals representing organisations who work with SHL and/or its affiliates. The survey was conducted in late September 2012.
The majority of respondents were located in China (42%), South Africa (13%) and the United Kingdom (11%), with 18% from other countries. Respondents represented both emerging and established economies. For the purposes of this report we have defined the Emerging economies as those countries in the BRICS bloc from which we received responses. These are India, China and South Africa, to which we have added responses from countries in the Middle East. The Established grouping comprises Europe, Australia and New Zealand, the Americas, Singapore and Hong Kong. As in previous years' surveys, respondents represented a variety of company sizes and industry sectors. Most respondents report into a Human Resources function within their organisations and represent a variety of roles including HR or staffing managers, HR leadership and HR generalists.
About SHL
SHL is the leader in talent measurement solutions, driving better business results for clients through superior people intelligence and decisions - from hiring and recruiting, to employee development and succession planning. With a presence in over 50 countries, SHL delivers more than 30 million assessments annually in over 30 languages - allowing over 10,000 business customers to benefit from both global expertise and local insight. Along with its world-class consulting practices and 24-hour support centre, SHL clients can access over 1,000 assessments through an easy-to-use technology platform. SHL was acquired in 2012 by CEB, the leading member-based advisory company. By combining the best practices of thousands of member companies with advanced research methodologies and human capital analytics, CEB equips senior leaders and their teams with insight and actionable solutions to transform operations. Headquartered in London, UK, SHL has offices in North and South America, Europe, the Middle East, Africa, Asia and Australia/New Zealand. For more information, visit www.shl.com.
Media enquiry:
Karen Wong
Marketing (HK & Singapore) & Asia Communications Manager, SHL
E: karen.wong@shl.com
